OREANDA-NEWS. August 05, 2014. The business model created by Baltikums Bank and implemented in the first six months of 2014 is a good tactical step towards implementing the bank’s business strategy – this is confirmed by the bank’s financials for the first half year.
 
As evident from Baltikums Bank unaudited financial data, the bank’s core business income in the first half year reached EUR 14.8 mio., with net profits increasing to EUR 6.35 mio. Key bank reliability indicators remain strong as ever, with the institution’s liquidity at the end of the period being 75.36% and capital adequacy being 17.95%. The bank’s return on equity (ROE) ratio was 24% and its return on assets (ROA) ratio was 2.6% - without a doubt, this makes Baltikums Bank one of the most successful banks in Latvia. At the end of the period, the bank’s total assets (including assets under management) reached EUR 684.2 mio.
 
“The first half of 2014 is characterised, on the one hand, by gradual stabilisation and development of Latvia’s business environment and, on the other hand, increased geopolitical tension within a wider region, so evaluation of any results should consider the aforementioned aspects,” Baltikums Bank Chairman of the Board Dmitrijs Latisevs comments on the financial results. “Increased geopolitical risks are certainly having a profound effect on the financial market, and have been since last autumn – in this light, the bank’s ability to maintain stable deposit performance is particularly commendable. We have reason to be proud of the trust of our clients, whose EUR 154.38 in assets under management make the bank one of the largest private capital managers in the sector. The bank’s securities portfolio is also being managed with success, especially in light of the market situation overall,” Latisevs adds.
 
“Compared to last year’s period, this half year we increased lending volumes by 39%. We are pleased to add that 58% of this increase was invested in the economy of Latvia, supporting creation of a number of production facilities in cities and towns across Latvia: this will promote export of goods produced in Latvia and create new jobs in our home country,” asserts the Baltikums Bank Chairman of the Board.
 
“The bank’s stable long-term growth is determined largely by the clear-cut business strategy and ongoing priorities of Baltikums Bank. It confirms the professionalism of our specialists in managing international companies. We have provided great added value and ensured a new level of service by completing our transition to a new business model – restructuring client service to proceed under the guidance of Client Relationship Directors (CRDs) and their teams,” Dmitrijs Latisevs explains.

To improve cooperation with entrepreneurs in the Baltics, Baltikums Bank also opened two representative offices in the past six months – one in Tallinn and one in Vilnius. This reporting period was devoted to development of new technological solutions that would improve the comfort and security of clients, which will also support implementation of new products and services or enhancement of available offerings – targets for the second half year. Thus, for instance, e-commerce services will be developed, and a new version of the Baltikums Internet Bank will be launched in late summer – a much more modern, dynamic, convenient and feature-rich solution.
 
“The safety, reliability, long-term partnership and ability of the bank to provide each client with an individual solution are key provisions for successful business of our clients and our bank – as evident from the bank’s performance in the first half of 2014 – principles we will continue to observe, prioritising the bank’s services in international trade,” concludes the Chairman of the Board of Baltikums Bank.